"If the interdiction is implemented by the 11 current TPP member states, the government will call for its scope to be limited to subsidies that would unquestionably lead to overfishing, as the Japanese fishing industry heavily depends on this source of funding, according to the sources.The government’s position also reflects concern the ban may include subsidies for the construction of ports and other infrastructure, hindering recovery efforts in coastal regions where the 2011 earthquake and tsunami ravaged local fishing industries.
But the issue is far from a done deal, as differences remain between countries including the United States, Australia and New Zealand, which are hoping to protect the environment and fishing resources through the measure, and other TPP countries that are still opposed.
Japan will become the 12th member of the TPP negotiations during the next round from July 15 to 25 in Malaysia, but it has yet to obtain official documents detailing the discussions to date. The TPP members aim to agree on a Pacific Rim trade liberalization framework by the end of the year.
The information the government has collected so far on the subsidy ban from participating countries points to the possibility of the measure being comprehensive with only a limited number of exceptions, such as subsidies for installing distress signal equipment, the sources said.
A number of officials in Tokyo fear such a ban among the TPP nations could hand the fishing industries of non-member countries such as China and South Korea the advantage over Japan’s."
28/07/2013
US: Fisheries subsidies negotiations alive and kicking… at the TPP
27/03/2012
NZ: Tim Groser's campaign against subsidies to fisheries (including fuel!) continues...now at the OECD
According to news articles in various media Mr Tim GROSER, New Zealand's Minister Responsible for International Climate Change Negotiations, will attend a two-day ministerial meeting of the OECD's Committee on the Environment that starts on 29 March 2012.This is an interesting development (see my previous posts on NZ and climate change negotiations and on subsidy notifications to the WTO).
Here is a link to the OECD website announcing the meeting:
http://www.oecd.org/document/11/0,3746,en_21571361_40172921_40213579_1_1_1_1,00.html
And here links to the press articles:
http://www.nzherald.co.nz/environment/news/article.cfm?c_id=39&objectid=10794924
http://english.peopledaily.com.cn/90777/7770740.html
13/11/2011
New Zealand: foreing vessels (and foreign subsidies?) and charter agreements
Some of my previous posts on NZ included a one titled "Domcumentary on NZ fishing practices" (15/08/2009).
New Zealand's authorities have taken these allegations very seriously and have launched a "Ministerial Inquiry into Foreign Charter Vessels" on these practices.
Perhaps readers have comments on this, i.e. the possible use of subsidised vessels, and its relation to WTO issues, such as the export of products that have benefited from subsidies (WTO Agreement on Subsidies and Countervailing measures).
http://www.fish.govt.nz/en-nz/Consultations/Ministerial+Inquiry+into+Foreign+Charter+Vessels/default.htm
And here the link to the "Nautical Blog" with a post on this issue (chartering in New Zealand):
http://nauticallog.blogspot.com/2011/04/holier-than-thou.html
02/11/2011
NZ: interesting presentation by governement official on WTO negotiations
http://www.seafoodindustry.co.nz/f1690,84125/84125_Haike_Manning_WTO_Fisheries_Subsidies.pdf
03/11/2010
NZ/WTO: Tim Groser on film stars and WTO fisheries subsidies negotiations
"There will be film stars, vegans, people running around in polar bear suits. This is, ladies and gentlemen, international diplomacy in action. Is it likely to lead to anything useful?”“Highly experienced and astute Secretariat officials, working closely with experienced negotiators from a number of countries, will be developing a text covering the key issues contained in the unmanageable draft legal text and on which firm political decisions are required - mitigation targets, financing in both the short and long term, capacity building and other key elements of the earlier Bali Action Plan.”
“We should be thankful for small mercies. With complete collapse staring us in the face, we salvaged at least the Copenhagen Accord. This was produced by a small group of Heads of Governments of some major countries, operating in an unplanned and one could say haphazard way.They had no choice, and thank goodness they did take the initiative. However, it was a modest return from the investment of so much high-priced political talent - not to mention the pre-Copenhagen hype, based around the absurd negotiating scenario of ‘No Plan B'. I will leave to others to describe the contribution made by Hollywood film stars to the process. Rationality, one could say, was at a premium and we paid the price in terms of the mediocrity of the result.”
20/06/2010
WTO: fisheries subsidies should be part of the single undertaking...according to Barbados and New Zealand
SW: What are the odds that the fisheries subsidies negotiations move to another venue if the WTO talks remain stalled for too long? In a related question, if the round as a whole does not progress in the near future, would you endorse having the fisheries negotiations ‘carved out’ so that they could proceed separately?
Barbados: I am confident that the Round will be completed. The talks are not stalled. We are still having meetings and negotiations and there is still much to discuss and agree to in the area of fisheries, so it is too early to begin looking at shifting the venue or carving out any negotiations for early harvest. The DDA is clear on the issue of the single undertaking, so all issues will have to be adopted by Ministers simultaneously. I do believe that, even in the unlikely event that we were not to finalise the negotiations on fisheries, the issue of sustainability, fisheries management and the developmental aspects of fisheries have been sufficiently ventilated over the past few years, especially by important NGOs such as the WWF, the ICTSD and OCEANA, that engagement on this issue would be continue. The key is for the FAO and Regional Fisheries Management Organizations to follow through on some of the issues being discussed at the WTO, even in the event that there is no formal agreement.
New Zealand: The WTO is the appropriate venue for multilateral negotiations on fisheries subsidies for two key reasons. First, the problem is as much economic and trade-related as it is environmental. Over a third of global fish production is traded internationally, making fish one of the most traded ‘agricultural’ commodities. Fish and fish products account for around 13 percent of global ‘agricultural’ trade. The World Bank and the FAO, in their 2008 report entitled “Sunken Billions”, estimate that the potential benefits of this trade are far less than they should be; the economic losses in the global marine fisheries industry, resulting from inefficiencies (including subsidies) and overfishing add up to US$50 billion per year— that’s US$1.5 trillion over the last 30 years.
Second, disciplines around fisheries subsidies should be derived from, and consistent with, existing disciplines around general subsidies. The WTO Agreement on Subsidies and Countervailing Measures’ existing disciplines set a solid, multilaterally agreed legal framework for these trade measures, and the terminology and concepts involved have been interpreted and clarified by the dispute-settlement process over many years. It is the logical institutional and legal base from which to build a new set of disciplines on fisheries subsidies.
These negotiations provide a unique opportunity to create effective disciplines on fisheries subsidies that deplete fish stocks on which the livelihoods of vulnerable communities depend. The negotiations are an integral element of the Doha Development Agenda, and New Zealand believes the final disciplines should form part of the outcome of the Doha round as a whole.
Here is the link to the full text of the interview:
http://www.globalsubsidies.org/en/subsidy-watch/analysis/the-wto-fisheries-negotiations-interviews-with-barbados-and-new-zealand
01/02/2010
WTO - NZ: a former Chair of the WTO Negotiating Group on Rules on the workings of international negotiations
There will be literally thousands of international civil servants; hundreds of harassed security guards; a phalanx of the world's media interviewing delegates initially and finally interviewing each other. There will be businesses, lobbyists, a diverse range of NGOs with a vast universe of demands and agendas, some of which will be only loosely related to climate change.
There will be film stars, vegans, people running around in polar bear suits. This is, ladies and gentlemen, international diplomacy in action. Is it likely to lead to anything useful?
I have spent thirty years negotiating international economic agreements. Most of them, contrary to popular opinion, and after massive political frustration and delays, do end up getting done - never perfectly of course, but usually in the right direction.
But this is never achieved in one step and seldom in conformity with agreed 'road maps', or time-lines to which solemn Brownie oaths have been earlier pledged. A successful negotiation is always done incrementally by building up convergence and consensus first at the general, then increasingly specific, levels of detail.
Highly experienced and astute Secretariat officials, working closely with experienced negotiators from a number of countries, will be developing a text covering the key issues contained in the unmanageable draft legal text and on which firm political decisions are required - mitigation targets, financing in both the short and long term, capacity building and other key elements of the earlier Bali Action Plan.
Extremism, or gross tactical misjudgements by certain Delegations, can still torpedo what could be a highly constructive step towards a full and ratifiable agreement at a subsequent point. This is not a time for people to start throwing their toys out of the cot. And if finally wisdom prevails, and we do get a solid set of politically binding decisions on key issues, our professional negotiators will then be able to re-engage in 2010 to complete the second, and one hopes, final step towards a far more solid agreement than Kyoto ever was.
http://www.voxy.co.nz/politics/speech-groser-trade-and-climate-change-negotiator039s-perspective/5/32614
http://www.beehive.govt.nz/speech/trade+and+climate+change+negotiator039s
15/08/2009
NEW ZEALAND: documentary on NZ fishing practices

A documentary titled “The Great New Zealand Fishing Scandal” is making a lot of noise in that great fishing nation.
The main theme of the documentary, made by the investigative journalist Guy Henderson, are the fishing practices by foreign vessels that are allowed to harvest fish in NZ waters on behalf of domestic companies.
According to the New Zealand press the documentary shows foreign factory vessels (with foreign crews) chartered by New Zealand companies to catch fish under the quota (e.g. of orange roughy) of the latter.
Some of the comments made in the aforementioned press echo a certain degree of discontent, as such practices can result in New Zealanders being deprived of jobs in the fishing industry. Furthermore the documentary seems to point to an alleged lack of control on the operations of these foreign vessels.
New Zealand’s Maritime Union has asked for a Parliamentary investigation on this matter.
At any rate, New Zealand is a strong competitor in international trade in fisheries products. The New Zealand government has always contended that it does not provide subsidies to its fishing industry. It is thus to the credit of private operators that they try to do their utmost to lower their cost to remain competitive in the international markets, including by hiring foreign vessels that are less expensive to operate than domestic vessels.
I tried to find an official reaction to the documentary but without success. I would very much welcome if readers can provide me with information on a reaction from New Zealand’s authorities, or from NZ companies, to the documentary.
By the way, this documentary reminds me of a number of articles, back in 2006, about criticism by Maoris on proposal by the government to regulate the salaries paid in these foreign chartered vessels.
Here a few links on the contents of the documentary.
http://www.munz.org.nz/index.php/2009/08/05/inquiry-into-fishing-industry-needed/
An interview (in MP3 format) with the maker of the documentary can be found here.
http://www.wammo.co.nz/2009/08/03/the-great-nz-fishing-scandal/
Information on NZ’s legislation concerning treatment of foreign chartered vessel crews can be found here:
http://www.immigration.govt.nz/community/stream/employ/employingtemporaryworkers/whatisrequired/nonzworkers/specialfields/foreignfishingcrews.htm
Here is a link to an article published in the “Australia and New Zealand Maritime Law Journal” Vol 23, No 1 (2009) titled “Modern Day Slavery: Employment Conditions For Foreign Fishing Crews In New Zealand Waters” written by Jennifer Ann Devlin.
https://maritimejournal.murdoch.edu.au/index.php/maritimejournal/article/view/82
And here is a link on Maori’s criticism to setting foreign crew wages at the same level as NZ‘s ones
http://www.newstalkzb.co.nz/newsdetail1.asp?storyID=104952
05/08/2009
NEW ZEALAND: more questions and answers from NZ's WTO Trade Policy Review
The question touches upon New Zealand's restrictions on foreign investment in the fisheries sector and the criteria used to allow for such investment.
(the references to paragraphs relate to the Report prepared by the WTO Secretariat (WTO document WT/TPR/S/216 of 6 May 2009). The answers can be found in the Record of Meeting which took place on 10 and 12 June 2009 (WTO document WT/TPR/M/216/Add.1).
Q49 In paragraph 24 it is mentioned that "Fishing quotas and ACE may only be held by nationals of New Zealand or by majority-owned domestic companies; permission may be granted, under certain circumstances, by the Minister of Fisheries and the Minister of Finance, for an overseas person to hold a fishing quota in New Zealand (Chapter II(5))." Footnote 76 of Chapter II (page 32) mentions increased export receipts for New Zealand exporters among the factors for determining whether overseas investment in fishing quota is in the national interest. However the Fisheries Act 1996 in 4: Quota management system, 57.(4).(b) (C) mentions "the development of new export markets or increased export" as a factor for determining whether foreign investment is in the national interest. Does this imply that New Zealand would allow purchase of fishing quota by an overseas investor in exchange for trade concessions (e.g. import duty reductions) by the country to which the foreign investor belongs?
Answer:
No. Trade concessions by the government of the country of a potential foreign investor would not be relevant to a determination by Ministers to allow the purchase of fishing quota by an overseas investor.
Well, if NZ's government confirms that it does not practice "access-to-markets for access-to-the-ressource", I will believe it, even if the legal texts suggest something else.
29/07/2009
NEW ZEALAND: questions on fisheries subsidies at NZ's WTO Trade Policy Review
(the references to paragraphs relate to the Report prepared by the WTO Secretariat (WTO document WT/TPR/S/216 of 6 May 2009). The answers can be found in the Record of Meeting which took place on 10 and 12 June 2009 (WTO document WT/TPR/M/216/Add.1).
Q50 In paragraph 26 it is mentioned that New Zealand introduced in September 2008 an emission trading scheme. According to publicly available information the fisheries sector is being treated differently than other sectors as will receive a free allocation of emission units covering 50% of the total of all eligible parties' 2005 emissions from the consumption of fuel. This free allocation will be provided each year from 2011 to 2013.
Furthermore, the official webpage explaining the functioning of the emission trading scheme mentions (see text hereunder) that this measure is a subsidy, for which one of the main raisons d'être is the fact that this sector is exposed to trade.
"Free allocation is being provided to various groups under the emissions trading scheme for a range of reasons. It's technically a subsidy, but it's a transitional measure only available to some emitters."
"The rationale for free allocation of emissions units to forestry and fishing is more that asset values are affected by introducing the emissions trading scheme, so allocation aims to achieve equity rather than deal with economic regrets. Having said this, there is an element of trade-exposure underpinning the rationale of providing free allocation to the fishing sector." (http://www.climatechange.govt.nz/ emissions-trading-scheme/questions-and-answers.html#fishing)
Could New Zealand confirm the above information?
Answer:
New Zealand can confirm that an amendment to the Climate Change Response Act 2002, passed in September 2008, introduced an emissions trading scheme. This scheme was designed as a key instrument to introduce, over time, a price on carbon across the New Zealand economy. The scheme covers all sectors and the six main greenhouse gases, and, as such, is one of the most comprehensive schemes of its kind in the world.
The current legislation contains provision for free allocation as a transitional measure to some sectors of the economy whose competitiveness may be at risk, due to uneven coverage and pricing of carbon across economies in the short term, resulting in carbon leakage. Partial and transitional free allocation is envisaged for some sectors, including forestry, industry, agriculture and fishing, to adapt to this domestic policy measure of emissions pricing in the New Zealand emissions trading scheme (ETS).
We note that other emissions trading schemes, including the EU ETS, also involve the use of free allocation. The legislation is currently being reviewed by a special Parliamentary select committee, the Emissions Trading Scheme Review Select Committee.
Some of the information contained in the website quoted was incorrect, and does not reflect the official view of the New Zealand Government.
Q51 Given that most of New Zealand's fish production is intended for export, such subsidy can be considered a "de facto" export subsidy.
Answer:
We disagree. There remains considerable uncertainty internationally about the application of WTO rules to measures such as free allocation under an emissions trading scheme, which is designed explicitly to enable countries to meet multilateral climate change objectives. These provisions simply level the playing field to avoid a distortion from the application of domestic policy to meet multilateral objectives. This is consistent with emerging international practice to provide a level of transitional assistance under an ETS.
Q52 Has New Zealand carried out an analysis demonstrating that the cost of the emissions trading scheme cannot be passed to customers (most of them third country importers) of New Zealand's fishing industry?
Answer:
New Zealand is a price taker on international markets: the Emissions Trading Scheme will not change this.
Q53 Has New Zealand quantified the financial benefit for New Zealand's exporters of the aforementioned subsidy?
Here is the link to the WTO website with all the information on the Trade Policy Review of New Zealand.Answer:
There will be no net financial benefit to New Zealand's fishing industry resulting from his transitional measure. The industry will face higher fuel costs given the inclusion of iquid fuels in the ETS. The free allocation will offset only a portion of those costs for a limited period of time.
http://www.wto.org/english/tratop_e/tpr_e/tpr_e.htm
17/05/2009
WTO: Director General Pascal Lamy on Fisheries Subsidies (4) in New Zealand!
As an island nation with important marine resources, New Zealand is very active in working for stronger disciplines on fisheries subsidies, an area where economic and environmental concerns can be clearly complementary. Here too the WTO negotiations provide the only effective means of securing legally enforceable international agreement. This is another important New Zealand -and global — interest that would be threatened by failure to conclude the Round.
The speech was delivered on 6 March 2009 to the Auckland Chamber of Commerce. Also note that the extract concerns the "prepared text" as mentioned in the WTO website. Here is the link to the text:
18/09/2008
NEW ZEALAND: fishing rights at no cost for Maoris. Is this a subsidy?
The document can be found at the WTO's website. It has the reference T/TPR/M/115/Add.1 of 17 June 2003.
I leave to the reader to judge on whether this allocation of fishing rights is a subsidy or not.
34. (para 23) The report states: "[…] The TAC is set in order to ensure that the greatest yield can be achieved over time while maintaining the stock's productive capacity; in addition, where non-commercial users are involved (such as Maori or recreational fishers), a quantity of stock is set aside for them before the commercial catch (TACC) is established. […] When a new species is introduced to the QMS, 20% of the catch of all ITQs is allocated to Maori. The remaining quota is distributed amongst people holding commercial fishing permits for each species, based on how much they caught during the "qualifying years". Any remaining ITQ may be tendered off by the Crown." According to information available from the Ministry of Fisheries (www.fish.govt.nz/) and "Te Ohu Kai Moana (TOKM)", in English "Treaty of Waitangi Fisheries Commission" (www.tokm.co.nz/), Maori are involved in commercial fisheries in New Zealand. The web site of the TOKM states that “assets held by the Fisheries Commission, Maori currently own or control more than 33 percent of New Zealand’s commercial fishing quota.” This web site provides also information from which it appears that the “Treaty of Waitangi Fisheries Commission” currently owns a substantial share in the New Zealand’s companies active in commercial fisheries.
35. Could New Zealand confirm that the 20% allocation for Maori on new species entering the QMS (Quota Management System) is made at no cost?
Answer - The 20% allocation to Maori is made at no cost. It is the result of the settlement of Maori fisheries claims against the Crown in 1992, and the passing of the Treaty of Waitangi (Fisheries Claims) Settlement Act 1992.
36. Could New Zealand provide information on the value, in money terms, of the yearly quota allocations to Maori for commercial fishing purposes, for the years 1998-2002?
Answer - The current value of the fishing quota allocations held by Maori is approximately NZ$700 million.
17/09/2008
NEW ZEALAND: "An emissions trading subsidy for fishing?"
I will come back on this issue which I find most interesting mainly because it concerns a country that has always fought for the abolition of fish subsidies.
Hereunder are the links to the posts of the "Frogblog" and "The Hive".
http://blog.greens.org.nz/2008/08/31/an-emissions-trading-subsidy-for-fishing/
http://wellingtonhive.blogspot.com/2008/08/greens-party-to-ultimate-corruption.html
Here is also a link to the government's website giving information over the emissions scheme:
http://www.climatechange.govt.nz/emissions-trading-scheme/questions-and-answers.html#fishing

